The U.S. crypto bill has hit a roadblock after banks said they cannot support a White House plan on stablecoin rewards. Because of this disagreement, talks have slowed down.
Now many are watching the April 16 roundtable by the U.S. Securities and Exchange Commission, where regulators and industry leaders will discuss the bill’s future.
The ongoing negotiations over the CLARITY Act, a major U.S. crypto regulation bill, have hit a roadblock after banks opposed a proposed rule on stablecoin rewards. The bill, which passed the House last July, aims to bring clear rules to the digital asset market.
Under the proposal, the Commodity Futures Trading Commission would oversee digital commodities like Bitcoin, while the U.S. Securities and Exchange Commission would regulate crypto assets that qualify as securities.
Supporters believe the law could give the U.S. crypto market a clear legal structure and help companies operate with more certainty.
The biggest disagreement centers on stablecoin rewards. Crypto companies want to offer 3 to 4% incentives to attract users and compete in the growing digital payments market.
Banks strongly oppose this idea. They worry that rewards could encourage people to move money out of traditional bank accounts and into crypto wallets.
Some financial institutions estimate that stablecoins could pull $500 billions from bank deposits in the coming years. Such outflows could reduce funds available for loans and weaken parts of the banking system.
To resolve the dispute, the White House proposed a middle-ground solution. The plan allowed rewards only for limited uses, such as peer-to-peer payments, while banning incentives for stablecoins that remain idle in wallets.
Most crypto companies accepted the proposal because it still allows them to compete for users. However, banks rejected the compromise and pushed for stricter limits.
Following the disagreement, Donald Trump criticized banks on Truth Social and said he would not allow them to undermine his crypto agenda.
Despite the setback, discussions around crypto regulation continue. The U.S. Securities and Exchange Commission plans to hold a roundtable to review how federal securities laws should apply to digital assets.
The debate will also examine how new crypto rules could support innovation while protecting investors.
However, with negotiations stalled and banks still resisting stablecoin rewards, many observers now believe the CLARITY Act may not become law until 2026.
The bill is stalled because banks oppose a White House plan to allow interest payments, or rewards, on stablecoins, causing a major disagreement in negotiations.
Crypto firms push 3-4% rewards to lure users for payments; banks oppose, worried it’ll drain deposits and hurt lending. White House offered limited P2P rewards, but banks said no.
SEC hosts an April 16, 2026 roundtable on applying securities laws to crypto, debating innovation vs. investor protection—key step amid stalled talks, possible law in 2026.
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